Hiring spree beefs up McDonald's recent boom

The fast-food chain's plan to add 50,000 employees is yet another result of its extraordinary business run over the past few years.

By Kim Peterson Apr 4, 2011 11:47AM
April 19 is a big day for McDonald's (MCD). The hamburger chain wants to hire as many as 50,000 workers on that day, and it will take applications on its website and at many restaurants.

The hiring binge is one result of the extraordinary business run McDonald's has engineered over the past few years. When the economy tanked, more people turned to the Golden Arches to dine on a budget. McDonald's added to its bottom line with its successful McCafe line of coffees and other beverages. And smart promotions like the nationwide McRib and oatmeal launches worked well.

Now the company is moving more restaurants to a 24-hour schedule. It's aiming for three to four new hires per restaurant, which would add 7% to its work force in the U.S. for a total of 700,000 employees.

Post continues after this video interview with McDonald's about the hiring spree:
The company's share price rose slightly on the news Monday to $76.42 in morning trading. That's less than a 1% gain over Friday's share price.

McDonald's started the year with a bang, and momentum hasn't slowed. In January, same-store sales in the U.S. rose 3.1% even as horrendous weather in January kept people from visiting stores. In February, sales rose 2.7% from the year earlier.

But even as its business thrives, McDonald's faces increased costs for its raw materials. Analysts expect the prices McDonald's pays for chicken, wheat and cheese will rise 2% to 2.5% this year, The Los Angeles Times reported.

So to bulk up its workforce by 7% in the face of rising costs says a lot about McDonald's confidence in its business moving forward.

The Atlantic notes that the 50,000 employees McDonald's wants is equal to a quarter of the new jobs created in the entire U.S. last month. The company and its franchises are likely to boost spending by more than $518 million in the next year, Fox Business reports, mostly through wages and salaries. That could lead to an extra $54 million in payroll taxes, one study reported.

VIDEO ON MSN MONEY

42Comments
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Hmmm, let's run the numbers on this hire. 50,000 teenagers at $5.50 an hour that is $11,000 a year. Hey they qualify for $2,500 earned tax credit and $450 in food stamps. That is about $8,000 a year or about $400 million a year hit to our deficit a year. Then in 2014 they will qualify for government health care at $5,000 plus a year at which time they will cost the US taxpayer $13,000 more than they are earning. 

Not great news everyone. Also their buying power will not be enough to buy the 9,000,000 vacate homes across America. 

Looked at another way we have not shot missiles at Yemen, Bahrain or other African countries mass murdering their country men because we have run out of missiles and will not be able to replace them as we are spending $400 million on McDonald hires a year instead of building 400 tomahawk missiles. So innocent people across the globe will be killed because we could not protect them because we were giving hand outs to people McDonald will be hiring. 
Apr 4, 2011 3:03PM
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Here we go with the food police.  I wonder how well THAT job pays...Smile

Yes, Americans have gotten heavier, but you can't blame one restaurant for the phenomenon.  Hey, they do have salads.  What's humorous to me is the one thing I absolutely love from McDs, is the oatmeal.  I don't know how well it sells nationally, but that's my favorite weekend breakfast.

Apr 4, 2011 3:03PM
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minimum wage no benefit jobs just what this country needs

Apr 4, 2011 3:01PM
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Oh yeah, America is really on a roll now....50 thou from McDonald's....all's we need is 25K each  from Burger King and Wendy's and we will be on our way to economic recovery.

I am now lost for words....except this....sooooo embarassing.

Apr 4, 2011 2:53PM
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just what we need for people with families - a low paying job but atleast it has benefits and pays more than unemployment but there is no way you can survive with just mc donalds for a job so you will have to go out and get another job and let the IRS shaft you because you are killing yourself working 2 jobs to make ends meet - isnt it great to be an american anymore in the work place

even people with advanced degrees up to doctorates are having problems finding jobs today.  i remember a 4 year degree meant management positions, not entry level
Apr 4, 2011 2:47PM
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According to the McDonalds Website this is the "Number of Global Restaurants:
More than 32,000"
Now that is globally so ... Big deal it is like hiring approximately 2 people per restaurant.

Apr 4, 2011 2:36PM
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Maybe we should all look at are self's for our economic problem's.Sick of hearing the ME GENERATION wanting more for less work! As far as I'm concerned a job's a job.If it wasn't so important to keep up with everybody else i.e  they have a new car or boat, why can't I, and learn to live within your means, maybe we wouldn't have this problem. For all the poster's slamming MCD because of their menu, DON'T BUY THE CRAP!!! It's not their problem America is fat, it's personal choice for everyone! America, get off your LAZY **** and do something about your life!! Blame yourself instead of this President or that President!!!! Be happy all of you can post your drivel at the expense of people who died giving you and me the freedom to do so.
Apr 4, 2011 2:34PM
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I for one am not surpised at the fast food chain hiring. Its not like they do not do it year round. I work at a corp store. Yes its not a great paying job but it is there and can provide an income. When kids are in school who do you think keeps it going to provide the customers in those times?  The economy is not mcdonalds fault so why blame them? Obama put a low income tax wavier into effect when he was first in office. So the jobs they say they created taxs will not be taken out if they make entry level pay. Bty those jobs are most likely for the overnights. If stores do not have an overnight team and they are allowing more stores to stay open that is were the positions will be filled and they are uping the overnight staff to abide local and fedarel laws that have been overlooked in the stores staffing policy for overnights.
Apr 4, 2011 2:34PM
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It's a job, and I'm pretty sure it pays more than unemployment does.  As for the remarks about "illegals" taking those jobs, you still have to present an I-9 to work there, but I think that mindset says something more negative about Americans than it does about foreigners.  If they're willing to work hard while the whiners want to sit around and talk about how "unfair' it all is, while at the same time declaring how beneath them the jobs are, there's not much hope for the future of this country.
Apr 4, 2011 2:31PM
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     These kinds of posts are why the illegals are taking your jobs, and we are dumbing down America. It just goes to show that people will whine no matter what  you do for them. Keep it up. Be too good for that Mcdonalds job. That illegal will take it, work his/ her way up, and own the place in ten years. Then you'll whine that it was the presidents fault that they took the crappy job "He" created and is now buying a house that's bigger than yours. This is already happening in case your too busy whinning into your Ramen to notice folks. Been to a mall lately? Who's driving the $50K cars and shopping? You keep on complaining about those people and I'll continue watching their kids get smarter than yours because they cherish the power of education. I'll keep watching them get promoted over you because you've wasted the time you should be working to succeed worrying about them taking your job. DID ALL OF THE HIGH PAYING JOBS LEAVE AMERICA ON THE DAY THE PRESIDENT WAS ELECTED!!? NO! You all sat back oblivious and quiet to what was going on while most of our largest companies moved off shore and now your blaming the current guy at any turn. All talk and nothing else. The US MAJORITY saw that we were on the way off a cliff and voted to do something about it and people actually think  that we need to go back to what we had. If you don't make $100K and above a year then you better support this guy because the decisions that were made in the past did alot more to support high income folks than it does you. How dare you scoff at any job in this economy. Wake up. The world is leaving you behind.
Apr 4, 2011 2:30PM
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more evidence that we, as a nation, are moving more towards being a plutocracy than we are a democracy, if we havent already arrived.
Apr 4, 2011 2:25PM
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So when Bush was in office with unemployment between 4.2% and 6.2% these jobs were called HAMBURGER FLIPPER jobs and LAUGHED at by the LIBS now that Obama is in and unemployment is 8.8% they love these jobs!

Apr 4, 2011 2:24PM
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I would imagine that we will need to learn spanish, since most of these jobs will go to ILLEGALS that can't speak English.
Apr 4, 2011 2:23PM
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I will flip burgers for you and you can flip them for me. And then we can tell each other that we use to have good paying jobs.
Apr 4, 2011 2:14PM
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Nice, they'll put more teenage kids to work earning minimum wage at low class jobs out there, reducing or completely eliminating employees that have earned pay raises after years of dedication, overall adding to the Bush era destruction of jobs. McDonalds will save billions while increasing overall poverty. BOOOOOOOOOOO   ! ! ! ! !
Apr 4, 2011 2:14PM
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Yeah,

I'm humble enough to work at Mickey D's.  Randall, Mickey doesn't make anyone overconsume, so don't blame the provider. 

What this country needs is humility.

Apr 4, 2011 2:12PM
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Guess Wal-Mart couldn't support more greeters. Let's hear it for minimum wage low skilled jobs. Thank you Obama!
Apr 4, 2011 2:08PM
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Keep the illegals coming! More work for them!
Apr 4, 2011 2:07PM
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Welcome to the flipping burgers economy!

 

4-23 hrs/week part times to encourage poverty with lower unemployment stats. This country is so corrupt that it will be burnt to ashes by the people supposed to protect it!

 

Newer greetings:

 

"Want me to Super-poor-you?

Thanks for your enslave work!

Come again!" 

Apr 4, 2011 2:04PM
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That's really great news for high school kids, but nothing to brag about for people with children and a mortgage.
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